Replies to post #52759 on Cytogenix (fka CYGX)

[bigworld]

NW LA: Sorry you got into this thing. I really am. Hell, I'm sorry I got into this thing and my losses aren't going to be that bad. Unless some financing angel, someone like GE Healthcare or a group of deep-pocket investors, comes in and provides a capital infusion, then the chances of the company surviving are ZERO. If they can't pay their rent, their utilities, the salaries and the payroll taxes, then they can't stay in business. It is as simple as that. If they had $5 million in their bank account and proper management I'd set the odds at 80% that the company could be successful. They have a great potential product in an up and coming area of biotech that is really in its infancy. If Malcolm had spent all the money he wasted on lawyers with all the lawsuits and arbitrations and spent that money hiring 2 or 3 sales people we probably wouldn't be in this mess. If Malcolm, Frank and Lawrence had concentrated on building the business instead of enriching themselves we wouldn't be in this mess. And the irony is that they didn't accomplish either one. The company is 2 months from bankrupty and Malcom, FV and LW will get part of what they deserve, which is nothing. The other part of what they probably deserve is jail time, but that is up to the SEC I guess.

[downregul8]

Nw-La – cygx has been in money crunches before and survived – but at the time had a fast talking stock selling officer who had a knack for pulling money out of thin air. Without a stock hawker, more shares outstanding, and selling into a decline, I think it will be harder this time. On the plus side, they have a real product and some, albeit small and secretive, sales. Having a saleable product is something business people understand and if they can make a decent business case with reasonable market penetration estimates they can probably get some folks interested. The biggest deterrent right now is their own record – it’s bad. Malcolm needs to get an outside opinion on what's best for the company and turn it over to someone who can plan and execute. More successes would have made it easier to get cash – results matter.

For the odds. If they can get a year or more of operating capital, new management, and more customers in the next month and a half – it’s a safe bet they won’t go belly up right away – and if they get enough money to actually kick off some INDs they should be able to keep things running for a few more years. Obviously if they don’t get money the place will fold by the end of the year. But, keeping the doors open and being a winner are two different things. Ultimately the long-term success will be based on just how competitive their products turn out to be in actual use. I’d say there’s a better than 50% chance they’ll find the money to keep going for a year – although it will likely be very dilutive as many have pointed out – and after that the same viability questions should be raised based on their product progress in addition to cash flow. The odds for long-term success will continue to go down until some human trial data comes in. Because they have no official human data, this is still a very risky stock and priced accordingly. This is part of the risk reward formula.

If you've bet more than you're comfortable losing - you may want to take some off the table.

In terms of Malcolm being in the same boat and therefore doing the right thing – don’t count on it. It is a logical thought but he has never demonstrated a sense of urgency. He may very well be doing the best that he can – but if you look at the record it is clear that his best is not good enough to keep this company going. Time to let the Peter principle run it’s course.

[neo43]

nw_La, MS has driven CYGX into the ground.

IMHO, this has hugely reduced the chance that anyone will ever make a ton of money being a shareholder of this company.

Even if CYGX survives, the SP is almost certainly going to go lower unless Malcolm can do something he's shown absolutely no ability to do in the past -- land a big contract or government grant.

I really think you should seriously consider taking a deep breath and selling out -- accept the loss and invest whatever's left of your nestegg in a company whose management is a lot more capable than Malcolm, LW, et al, have proven to be.

And there ARE companies like that out there. I had the great good fortune of finding a company called Premier Exhibitions about 2 years ago. I bought my first shares at $1.85 and have added as the company's progressed so that my ASP is around $3.50. The company is now on the Nasdaq big board and has traded as high as $18.50. Needless to say, I'm much wealthier than I was . . . .